Johnson & Johnson's Transportation and Warehousing Strategy

Johnson & Johnson's Transportation and Warehousing Strategy

Slide 2

Overall transportation goal of Johnson & Johnson is to deliver goods while ensuring availability in market in complete compliance with Environmental Sustainability.

Johnson & Johnson has created goal 'Healthy Future 2015'.

Healthy Future 2015 - A long-term goal in alignment of which overall transportation objective has been shaped.

It has aimed to improve the efficiency of CO2 emissions by 20%.

Improvement in fleet emission efficiency is applicable at the Johnson & Johnson overall global inventory of 28,000 owned and leased vehicles.

Progress measurement and assessment of goal realization will effectively be done through the use of extensive calculations.

Slide 3

Johnson & Johnson rely greater on the road and recently significant shift has also been noticed towards the use of rail track.

Fleet management is their key feature to reduce emissions from vehicles which triggers greater energy efficiency.

User of hybrid vehicles and owner of the largest corporate fleet of hybrid vehicles in US.

Delivery tricks running on diesel replaced with lighter cargo vans to trigger fuel efficiency.

Load shift towards rail to trigger greater capacity utilization.

Slide 4

Warehouses used by Johnson & Johnson are often leased but subsidiaries usually try to own manufacturing facilities, however they are leased abroad.

139 manufacturing facilities are operated by subsidiaries.

Industry segments in which they operate are pre-dominantly Consumer, Pharmaceutical, Medical Devices and Diagnostics.

Locations of the facilities by key geographic areas are United States, Europe, Western Hemisphere, Africa, Asia and pacific.

52 facilities are operating in US, 37 in Europe, 17 in Western hemisphere and 33 cumulatively in the region of Asia, Pacific and Africa.

Primary manufacturing locations are Argentina, Canada, China, India, Indonesia, Mexico, Netherlands, UK and USA.

Warehouses are located around the world.

Slide 5-6

Advantages

The facilities, being located in numerous countries around the world, triggers greater decentralization.

Greater decentralization means agile ...